Use the Information for the Question(s)below

question 56

Multiple Choice

Use the information for the question(s) below.
Glucose Scan Incorporated (GSI) currently sells its latest glucose monitor,the Glucoscan 3000,to diabetic patients for $129.GSI plans on lowering their price next year to $99 per unit.The cost of goods sold for each Glucoscan unit is $50,and GSI expects to sell 100,000 units over the next year.
-Suppose that if GSI drops the price on the Glucoscan 3000 immediately,it can increase sales over the next year by 30% to 130,000 units.The incremental impact of this price drop on the firm's EBIT is closest to:

• A)a decline of $1.5 million.
• B)an increase of $1.5 million.
• C)a decline of $2.4 million.
• D)an increase of $2.4 million.

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Definitions:

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Methodologies that involve stakeholders, especially community members, in the research process to identify, analyze, and solve community issues collaboratively.

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The process of collectively contemplating or discussing experiences, thoughts, or feelings with others to gain insights.

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The act of finding something unexpected or previously unknown through exploration or study.

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Educational training or activities designed to improve the knowledge and skills of employees or professionals, often within their place of work.